Australia is no longer one of the top 10 happiest countries in the world according to a new global study.

The University of Oxford released its latest Global Happiness Ranking report on Thursday.

Finland clinched the top spot for the eighth year running, while Australia landed at number 11, slipping one spot from number 10 in 2024.

The rest of the top five was exclusively European with Denmark, Iceland, Sweden and The Netherlands landing second through fifth respectively.

Oxford's World Happiness Report had New Zealand finishing just behind Australia in twelfth position, according to the university's Wellbeing Research Centre.

Other countries that managed to make it into the top 10 included Costa Rica, Norway, Israel , Luxemburg and Mexico .

These ranking are based on three-year averages of self-reported wellbeing scores from 147 countries.

more than 100,000 people participants ranked their overall satisfaction on a scale of zero to ten based on the opportunity and reassurance their country provides them.

One of the editors of the report, Jan-Emmanuel De Neve, said this year's results were more considerate of factors like wealth and health in assessing overall happiness.

'It turns out that sharing meals and trusting others are even stronger predictors of wellbeing than expected,' he said.

'In this era of social isolation and political polarisation, we need to find ways to bring people around the table again — doing so is critical for our individual and collective wellbeing.'

Generosity, social support and household size also played key roles in influencing survey responses.

In Mexico and Europe the average household size can accommodate four or five people which corresponded with both country's levels of happiness, the study said.

The president of the UN Sustainable Development Solutions Network, Jeffrey D Sachs, said the report's results could help countries become better going forward.

'The findings in this year's World Happiness Report reconfirm a fundamental truth: happiness is rooted in trust, kindness, and social connection,' he said.

While Europe dominated the top 20 slots several other western countries dropped to their lowest position in years.

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The US landed at its lowest ever ranking at number 24, well below its peak of 11th place in 2012.

Over the last two decades the amount of people who said they dined alone had increased by 53 per cent.

The UK faired only slightly better, coming in as the 23rd happiest country in the world which was its lowest worst performance since 2017.

Earth's unhappiest country was Afghanistan which also secured the unfavourable distinction in the 2024 report.

Afghan women in particular reported that their lives were difficult thanks to the severe restrictions brought in by the Taliban regime.

Sierra Leone in West Africa was the second unhappiest and Lebanon ranked third from the bottom.

THE HAPPIEST COUNTRIES IN THE WORLD ACCORDING TO OXFORD

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